GNC will remain open for business,according to a press releasefrom the company, as will all of its subsidiaries and its website.
GNC is entering this process with a signed restructuring support agreement that is executed by more than 92% of Term Lenders and 87% of ABL FILO Lenders. GNC and these lenders have reached an agreement on a pre-arranged standalone plan of reorganization. The support from GNC’s creditors will “enable GNC to emerge from this process expeditiously,” the release says.
Related: GNC Further Extends Debt Maturity Dates Founder of Uncle Matt’s Buys Brand Back from Dean Foods GNC Unable to Repay Impending Debt ObligationsAlternatively, GNC, Harbin Pharmaceutical Group Holding Co., Ltd., and a majority of GNC’s lenders have reached an agreement in principle for the sale of GNC’s business. The agreement outlines a $760 million purchase price for the transaction, which would be executed through a court-supervised auction process at which higher and better bids can be presented. The transaction, the press release says, is subject to mutually acceptable definitive documentation. In support of this sale, GNC has commenced a comprehensive marketing process for its business. If the sale occurs as outlined, it would be implemented instead of the standalone plan transaction.
The release says GNC expects to either confirm a standalone plan of reorganization or finalize a sale that will enable the business to exit from the bankruptcy process this fall.